A bankruptcy trustee is a representative who works for the Department of Justice and represents your estate during the bankruptcy proceeding. In the state of California, a Bankruptcy trustee is assigned to every Chapter 7 bankruptcy case. Working with a trustee during Chapter 7 bankruptcy is an essential aspect of completing the bankruptcy process and ultimately receiving your discharge.
Purpose of Chapter 7 Bankruptcy Trustee
The Chapter 7 bankruptcy trustee will review your bankruptcy petition for accuracy in your calculations and ensure that all the correct supporting information is present in your Chapter 7 bankruptcy petition. They may contact you to request additional paperwork such as information about your assets or a copy of your tax returns.
You will initially meet your Chapter 7 bankruptcy trustee during the 341 meeting of creditors. During this meeting, the trustee will ask you questions about the factors leading up to your bankruptcy and questions surrounding your assets. Once this meeting is complete, the bankruptcy trustee will liquidate any non-exempt assets you own and then divvy up the proceeds among your creditors.
While a bankruptcy trustee cannot act outside the authority of the US Bankruptcy Courts, the trustee can petition the bankruptcy court in certain situations. For example, if there is an assumption of fraud, misrepresentation, or false pretenses, the trustee may file an adversary proceeding with the court. Additionally, if a bankruptcy trustee finds inappropriate transfers of property, they may file a motion to claw back the proceeds of the sale to apply to your bankruptcy estate.
Working with your Bankruptcy Attorney
One of the significant benefits of hiring a Roseville bankruptcy attorney is that they most likely have experience working with the bankruptcy trustees in your district. This can be advantageous to your bankruptcy case by increasing your chances of receiving a discharge and completing Chapter 7 bankruptcy. Knowing what to expect can also drastically reduce the stress surrounding your court appearance at the meeting of creditors.